The Stock Market Game culminates in InvestWrite, a national essay competition run by the SIFMA Foundation. The competition encourages students to apply analytical skills and critical thinking to financial topics. Over 234,000 essays have been written by students in classrooms across the country, and nearly three-hundred and eighty volunteers have served as judges. Prizes are available for students who submit essays to be judged by a panel of judges.
InvestWrite provides a culminating activity to stock market game students
In a recent InvestWrite contest, an Emerson School 5th-grader took first place for the state of Michigan. The Stock Market Game offers students the opportunity to manage a $100,000 investment account. Students conducted research on the investments and then wrote essays about their decisions. Her essay focused on the future prospects for the wind turbine industry. She came in first place against more than 13,000 students from across the state.
Participating in The Stock Market Game challenges students to think about the long-term implications of their purchases and the wider economy. Macroeconomics is brought to life when students do this. The InvestWrite questions have a broader economic context, which allows students to integrate their learning. InvestWrite is a way for students to demonstrate their creative and analytical skills.
Teams with the highest earnings win
Stock Market Game: This is an investment competition open to middle school students. Eagle Ridge students participated in the competition this year and gained valuable economic lessons. An investor can lose money because of volatility in the stock market. Students believed their team wouldn't place well in the competition due to their losses. However, this year's Eagle Ridge students are able to weather economic storms. Students who were less fortunate were able take away valuable lessons.
Eagle Ridge Middle School's students placed second to fifth place in the division, out of 205 teams. They concentrated heavily on the medical industry, which helped them earn the first-place prize out of all Ohio elementary schools. Students were given $100,000 to invest in and required to keep detailed records of all stocks they bought and sold and to analyze market reports. The teams that earn the most money win.
Teaching financial literacy skills and math
A new study shows that playing the Stock Market Game can improve student scores on general multiple-choice tests and basic financial concepts. Teachers in the test group used it in class; the control group didn't. Both groups of students took the same pre- and post-tests and demographic surveys. The percentage of students who improved on the pre- and post-tests was higher for teachers who used the game in the classroom. Teachers also had access online to the lesson plans and assessment materials they needed.
Learning Point Associates found that students who participated in the Stock Market Game scored significantly higher on financial literacy tests than their peers. Students in grades 4-6 who participated in the Stock Market Game scored on average higher than students who didn't. This shows students that they can use the game in order to better understand the financial world. Important note: The program is not for students under 13.
FAQ
What are the types of investments available?
There are many different kinds of investments available today.
Some of the most popular ones include:
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Stocks: Shares of a publicly traded company on a stock-exchange.
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Bonds – A loan between two people secured against the borrower’s future earnings.
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Real Estate - Property not owned by the owner.
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Options - Contracts give the buyer the right but not the obligation to purchase shares at a fixed price within a specified period.
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Commodities – These are raw materials such as gold, silver and oil.
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Precious metals are gold, silver or platinum.
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Foreign currencies - Currencies other that the U.S.dollar
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Cash - Money that is deposited in banks.
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Treasury bills - Short-term debt issued by the government.
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A business issue of commercial paper or debt.
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Mortgages – Loans provided by financial institutions to individuals.
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Mutual Funds are investment vehicles that pool money of investors and then divide it among various securities.
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ETFs - Exchange-traded funds are similar to mutual funds, except that ETFs do not charge sales commissions.
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Index funds - An investment vehicle that tracks the performance in a specific market sector or group.
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Leverage: The borrowing of money to amplify returns.
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Exchange Traded Funds, (ETFs), - A type of mutual fund trades on an exchange like any other security.
These funds have the greatest benefit of diversification.
Diversification can be defined as investing in multiple types instead of one asset.
This helps you to protect your investment from loss.
How do I know when I'm ready to retire.
First, think about when you'd like to retire.
Do you have a goal age?
Or would you prefer to live until the end?
Once you have established a target date, calculate how much money it will take to make your life comfortable.
Then, determine the income that you need for retirement.
Finally, determine how long you can keep your money afloat.
Can I lose my investment.
Yes, you can lose everything. There is no 100% guarantee of success. However, there is a way to reduce the risk.
One way is to diversify your portfolio. Diversification allows you to spread the risk across different assets.
You could also use stop-loss. Stop Losses are a way to get rid of shares before they fall. This reduces the risk of losing your shares.
Finally, you can use margin trading. Margin Trading allows the borrower to buy more stock with borrowed funds. This increases your profits.
Should I diversify or keep my portfolio the same?
Diversification is a key ingredient to investing success, according to many people.
Many financial advisors will recommend that you spread your risk across various asset classes to ensure that no one security is too weak.
However, this approach doesn't always work. Spreading your bets can help you lose more.
For example, imagine you have $10,000 invested in three different asset classes: one in stocks, another in commodities, and the last in bonds.
Let's say that the market plummets sharply, and each asset loses 50%.
You still have $3,000. However, if you kept everything together, you'd only have $1750.
In reality, your chances of losing twice as much as if all your eggs were into one basket are slim.
It is essential to keep things simple. Take on no more risk than you can manage.
Statistics
- An important note to remember is that a bond may only net you a 3% return on your money over multiple years. (ruleoneinvesting.com)
- Most banks offer CDs at a return of less than 2% per year, which is not even enough to keep up with inflation. (ruleoneinvesting.com)
- Some traders typically risk 2-5% of their capital based on any particular trade. (investopedia.com)
- They charge a small fee for portfolio management, generally around 0.25% of your account balance. (nerdwallet.com)
External Links
How To
How to invest in Commodities
Investing means purchasing physical assets such as mines, oil fields and plantations and then selling them later for higher prices. This is known as commodity trading.
The theory behind commodity investing is that the price of an asset rises when there is more demand. The price falls when the demand for a product drops.
You don't want to sell something if the price is going up. You don't want to sell anything if the market falls.
There are three major types of commodity investors: hedgers, speculators and arbitrageurs.
A speculator would buy a commodity because he expects that its price will rise. He doesn't care about whether the price drops later. A person who owns gold bullion is an example. Or an investor in oil futures.
A "hedger" is an investor who purchases a commodity in the belief that its price will fall. Hedging can help you protect against unanticipated changes in your investment's price. If you own shares that are part of a widget company, and the price of widgets falls, you might consider shorting (selling some) those shares to hedge your position. You borrow shares from another person, then you replace them with yours. This will allow you to hope that the price drops enough to cover the difference. It is easiest to shorten shares when stock prices are already falling.
A third type is the "arbitrager". Arbitragers trade one thing to get another thing they prefer. If you are interested in purchasing coffee beans, there are two options. You could either buy direct from the farmers or buy futures. Futures allow you the flexibility to sell your coffee beans at a set price. Although you are not required to use the coffee beans in any way, you have the option to sell them or keep them.
All this means that you can buy items now and pay less later. If you know that you'll need to buy something in future, it's better not to wait.
There are risks associated with any type of investment. There is a risk that commodity prices will fall unexpectedly. Another is that the value of your investment could decline over time. Diversifying your portfolio can help reduce these risks.
Taxes are another factor you should consider. Consider how much taxes you'll have to pay if your investments are sold.
Capital gains taxes are required if you plan to keep your investments for more than one year. Capital gains taxes are only applicable to profits earned after you have held your investment for more that 12 months.
You might get ordinary income instead of capital gain if your investment plans are not to be sustained for a long time. Earnings you earn each year are subject to ordinary income taxes
Commodities can be risky investments. You may lose money the first few times you make an investment. However, your portfolio can grow and you can still make profit.